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China shaping the global e-commerce

Updated: Sep 22, 2021

China's dominance in the e-commerce ecosystem is increasing at a steady pace. This substantial growth is now reshaping the e-commerce trend worldwide.

E-commerce isn’t the cherry on the cake, it’s the new cake”

China’s e-commerce ecosystem is characterised by trends such as mobile-first consumers focusing on digital payments and social commerce adoption. The country is serving as a testbed for new ideas that will propel the future of the global e-commerce marketplace worldwide. Four main trends responsible for this shift are classified as follow:

1. Transition from the O2O model to omnichannel

Retailers in China are investing in omnichannel capabilities. Omnichannel capabilities enable retailers to offer a broad spectrum of capabilities from the market and merchandising to customer service and satisfaction.

E-commerce players are focusing on a transaction-driven marketplace model to enhance a more interactive consumer experience.

2. Mobile payments

Mobile payments have become a go-to option for many consumers and it is facing an all-time increase.

With the rise in smartphone ownership, the rate of online shopping is growing. Consumers prefer to use mobile phones as they come in handy and are convenient to use.

Consumers in China prefer purchases on social networks and encourage social media marketing through influencers, with clothing, cosmetics and personal care being the most demanded.

3. Value-added services

E-commerce players are expanding their margins by adding numerous value-added services such as consumer finance, supply chain, security and insurance.

4. Strategic partnerships

Strategic alliances are the root cause of a strong foundation. Alliances between e-commerce players on social media platforms are increasing.

Moreover, local Chinese champion companies such as Tencent and JD dominate a rapidly growing e-commerce system, influencing other nations globally. China’s focus on mobile-savvy consumers put it in the spotlight and is most responsible for shaping the future of e-commerce. Consumers today of every age prefer online to offline purchases. The rapid growth of this industry combined with a consumer base that is increasing every day has resulted in overall growth both domestically and globally. This unique environment is encouraging innovations in digital trade and commerce all over the world.

By- Aishveen Kaur


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